7 Analysts Assess Align Tech: What You Need To Know

Providing a diverse range of perspectives from bullish to bearish, 7 analysts have published ratings on Align Tech (NASDAQ:ALGN) in the last three months.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Align Tech, revealing an average target of $307.86, a high estimate of $355.00, and a low estimate of $225.00. This upward trend is apparent, with the current average reflecting a 12.49% increase from the previous average price target of $273.67.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Align Tech among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Align Tech. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Align Tech compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Align Tech's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Align Tech's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Align Tech analyst ratings.

Unveiling the Story Behind Align Tech

Align Technology is the leading manufacturer of clear aligners. Invisalign, its main product, was approved by the FDA in 1998, and it has since dominated, controlling over 90% of the market. Invisalign can treat roughly 90% of all malocclusion cases (misaligned teeth), and there are over 230,000 Invisalign-trained dentists and orthodontists. In 2022, Invisalign treated over 2 million cases, or roughly 10% of all orthodontic cases for the year, and it has treated over 14 million patients since its launch. Align also sells intraoral scanners under the brand iTero, which captures digital impressions of patients' teeth and illustrates treatment plans. Over 85% of Invisalign cases are submitted by digital scans and iTero scans make up over half of these scans.

Align Tech: Financial Performance Dissected

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Align Tech displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 6.12%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Align Tech's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 12.96%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Align Tech's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.34% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.0%, the company showcases effective utilization of assets.

Debt Management: Align Tech's debt-to-equity ratio is below the industry average. With a ratio of 0.03, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.